Growth Ratio Summary

Growth Score : 6.00

Royal Orchid Hotels exhibits strong revenue and asset growth, indicating successful expansion and market penetration. However, the company faces significant challenges with earnings and net income growth, which are declining. This suggests that while the company is growing its top line and asset base, it struggles to translate these gains into bottom-line profitability. The company needs to address profitability issues to ensure sustainable growth.

Financial Ratio Summary

Financial Score : 3.20

Royal Orchid Hotels faces challenges in its financial performance. Weak adjusted EPS and book value per share indicate poor profitability and asset value. While the dividend per share is reasonable, high capital expenditures may strain finances. The company needs to improve its earnings and asset management to strengthen its financial position. Overall, the company's financial health is a concern.

Profitability Ratio Summary

Profitability Score : 10.00

Royal Orchid Hotels demonstrates excellent profitability. High gross profit, ROCE, ROE, and ROA indicate efficient use of capital and assets to generate profits. Strong operating and net margins further confirm the company's ability to control costs and convert revenue into profit. This reflects strong financial health and efficient management.

Efficiency Ratio Summary

Efficiency Score : 6.67

Royal Orchid Hotels demonstrates mixed efficiency. High inventory turnover and short days sales in inventory suggest efficient inventory management. A good receivables turnover ratio and reasonable receivable days indicate effective credit policies and collections. However, weak fixed asset and capital turnover ratios suggest the company isn't generating sufficient revenue from its fixed assets and overall capital. This indicates the company is struggling to make efficient use of its assets to generate revenue.

Coverage Ratio Summary

Coverage Score : 8.80

Royal Orchid Hotels demonstrates a strong coverage position. A good interest coverage ratio indicates the company can comfortably meet its interest obligations. Additionally, high equity dividend coverage suggests a strong ability to cover dividend payments to shareholders. This reflects a financially sound position with low risk related to debt and dividend commitments.

Solvency Ratio Summary

Solvency Score : 8.40

Royal Orchid Hotels demonstrates a solid solvency position. Moderate debt and debt-to-equity ratios indicate a balanced capital structure, reducing financial risk. A good equity ratio further supports financial stability. Additionally, a strong debt-to-asset ratio suggests that the company finances its assets more through equity than debt, which provides an additional buffer against financial distress. This indicates a financially stable position, capable of meeting long-term obligations.

Liquidity Ratio Summary

Liquidity Score : 7.38

The company's liquidity position shows a mixed performance. Strong quick and cash ratios suggest a good ability to meet short-term obligations with highly liquid assets. However, a lower current ratio indicates potential challenges in covering current liabilities with current assets. Additionally, a weak operating cash flow ratio raises concerns about the company's ability to generate sufficient cash from its operations. While the company has sufficient liquid assets, improvements in managing its overall current assets and enhancing cash flow from operations are needed.